Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
The Canadian government bonds traded modestly lower Wednesday following a rise in the United States Treasury yields after hawkish comments made by the Federal Reserve policymakers. Also, weakness in the crude oil prices limited the growth in Treasury yields.
The yield on the benchmark 10-year bond, which moves inversely to its price, rose 1-1/2 basis points to 1.155 percent, the yield on long-term 30-year note climbed 1 basis point to 1.822 percent and the yield on short-term 2-year bond bounced 1/2 basis point to 0.548 percent by 12:40 GMT.
The San Francisco Fed President Williams (non-voter) said all Fed meeting are eligible for action but added the December FOMC meeting may be the best time to raise rates. Williams noted that it may be better to raise rates at a meeting with a press conference, as he sees it as a valuable tool to explain the reasons behind a rate rise. Overall, Williams still favors a gradual path for future hikes.
Adding to earlier comments, St. Louis Fed President Bullard indicated that there was no urgency to raise rates (though seeing a move in December as most likely), noting that 2H16 growth estimates do not look particularly impressive.
Also, New York Fed President Dudley (voter in 2016) said that the Treasury market continues to evolve, several complex questions/issues lie ahead, particularly how data reporting gaps should be close to ensure than as many relevant Treasury transactions as possible are collected, also aiming to define the proper scope/best process for sharing Treasury market data with the public.
The Canadian bonds have been closely following developments in oil markets because of their impact on inflation expectations, which are well below the Bank of Canada's target. Crude oil prices fell more than a percent following a rise in U.S. crude inventories and rising prospects that a production cut deal proposed by the OPEC could sour as its members continue to squabble. The International benchmark Brent futures fell 1.91 percent to $49.83 and West Texas Intermediate (WTI) dipped 1.76 percent to $49.08 by 12:40 GMT.
Lastly, Canadian stocks may struggle to recover its winning track Wednesday morning amid sluggish commodities.
The S&P/TSX Composite Index fell 0.35 percent at the close of the trading session to 14,870.63 on Tuesday.
